Private Equity Investment in Indian Real Estate Reaches USD 1.3 Billion in Q3 2026: Savills India
New Delhi, October 16, 2026: Private equity (PE) inflows into Indian real estate stood at USD 1.3 billion (Rs 129 billion) in the third quarter of 2026, according to a press release by global real estate consulting firm Savills India. The figure excludes USD 167 million (Rs 16 billion) of asset acquisitions made by REITs and InvITs during the quarter.
PE investment registered a 33% decline quarter-on-quarter as investors adopted a cautious approach amid heightened geopolitical and macroeconomic uncertainties. Despite the quarterly drop, year-to-date inflows from January to September 2026 reached USD 4.5 billion (Rs 435 billion), representing a 16% increase compared to the corresponding period in 2025.
In Q3 2026, the hospitality segment emerged as the leading recipient of institutional capital, capturing 26% of total PE inflows supported by rising consumption and continued investor interest. Industrial and logistics assets secured the second-largest share at 22%, driven by sustained demand from e-commerce, manufacturing, and supply-chain expansion. The residential segment followed with a 15% share, while office and data centre investments accounted for 14% and 8% of total inflows, respectively.
Major transactions during the quarter included CPPIB investing USD 314 million in Prestige Hospitality Ventures Ltd., Logicap acquiring warehouses in Chennai, Kolkata, and near Mumbai for USD 208 million, and Fidelity Investments putting USD 194 million into Lodha Developers.
Commenting on the market performance, Sumeet Bhatia, Managing Director, Research & Consulting, Savills India, said, “Private equity investment in Indian real estate has remained resilient in 2026, with YTD inflows reaching USD 4.5 billion, despite a more cautious global investment environment. The growing participation of domestic investors is particularly encouraging and reflects the increasing depth of India’s real estate market. Strong investor interest in segments such as hospitality and industrial & logistics highlights the broadening opportunity set. Looking ahead, we expect investors to remain selective, with capital increasingly directed towards segments offering healthy growth prospects and markets that are well positioned to attract capital as investors look beyond volatility towards India’s long-term growth story.”
